The Nobel Memorial Prize in Economics 1997: Press Release from the Royal Swedish Academy of Sciences

The Royal Swedish Academy of Sciences has decided to award the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel, 1997, to Professor Robert C. Merton , Harvard University, Cambridge, MA, and Professor Myron S. Scholes , Stanford University, Stanford, CA, for a new method to determine the value of derivatives.
Robert C. Merton and Myron S. Scholes have, in collaboration with the late Fischer Black, developed a pioneering formula for the valuation of stock options. Their methodology has paved the way for economic valuations in many areas. It has also generated new types of financial instruments and facilitated more efficient risk management in society.